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Pinterest shares surged 19.1% after the company beat Wall Street’s fourth-quarter sales estimates and showed robust user growth from a year ago.
The image-sharing company reported revenues of $1.15 billion, ahead of a $1.14 billion estimate from analysts surveyed by LSEG. The figure represented 18% year-over-year growth.
Along with the revenue beat, the company offered an upbeat sales outlook. Pinterest said it expects revenues of between $837 million and $852 million during the first quarter, versus LSEG’s estimate of $833 million.
“Our strategy is paying off,” Pinterest CEO Bill Ready said in a statement. “People are coming to Pinterest more often, the platform has never been more actionable and our lower funnel focus is driving results for users and advertisers.”
Global monthly active user figures also surpassed estimates, showing 11% growth from a year ago. Pinterest reported 553 million users during the period, versus the 547.4 million expected by Wall Street. Revenue per user also topped estimates.
The results come amid a flurry of strong earnings reports from social media companies in recent weeks. Snap shares surged after the bell Tuesday on better-than-expected results, while Meta Platforms recently topped results and reaffirmed plans for heavy artificial intelligence spending.
Following Pinterest’s report, Bernstein analyst Mark Shmulik upgraded shares to outperform from a market perform rating, saying that the company delivered on its “show me story.”
“It’s possible that this quarter was a one-off, though we see enough evidence in execution to believe the pace of progress is sustainable,” he wrote.